CNN-IBN, the 24-hour English news channel, is planning to tap the capital market with its Rs 105 crore (Rs 1.05 billion) initial public offering. The maiden float is expected to hit the markets early next year.
The company intends to use the proceeds from the issue for its growth plans, which include completion of the acquisition of IBN-7.
"We will be hitting the markets early next year, probably in January, with a Rs 105 crore IPO, of which Rs 5 crore (Rs 50 million) will be reserved for our employees. That means the offer for public will be Rs 100 crore (Rs 1 billion), and we intend to use the proceeds for our growth plans," CNN-IBN managing director Sameer Manchanda said on Thursday.
CNN-IBN has appointed Kotak Mahindra and ICICI Securities as bankers, and JM Morgan and IL&FS as advisors to the issue. The pricing of shares and the percentage of divestment were not revealed, while CNN-IBN is expected to make an announcement next week.
Subhash Chandra-controlled Zee TV, Prannoy Roy's NDTV and CNBC-TV18 are the other media channels listed on the stock exchanges.
CNN-IBN will use Rs 40 crore (Rs 400 million) from the IPO proceeds for the acquisition of IBN-7 - the Hindi news channel of the group that earlier belonged to the Jagaran group.
Manchanda said a decision on the percentage of stake to be offloaded was yet to be decided. At present, TV-18 and promoters hold 67 per cent in the company, while Manchanda, Rajdeep Sardesai (editor-in-chief) and others together own 23 per cent stake. IL&FS holds the remaining stake.
CNN-IBN was launched on December 17 last year in partnership with Global Broadcast News, as television journalist Sardesai quit NDTV to start another English news channel. GBN was floated by Sardesai, Manchanda and Haresh Chawla and Turner International.
The network has 20 bureaus with 600 employees in the country.According to TAM Research, CNN-IBN has a market share of 38.71 per cent among 25-year-old viewers across the country, compared with its nearest competitor's 34.41 per cent.